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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology US manufacturing sector sees acceleration AFP - Tuesday, January 5 Send IM Story Print An employee on the assembly line at the American Disposables Inc. factory in Ware, Massachusetts. The US manufacturing sector saw its strongest pace of activity since April 2006 last month as factories ramped up production to make up for the massive drawdown in inventories, a survey showed Monday. WASHINGTON (AFP) - – The US manufacturing sector posted its strongest pace of activity since April 2006 last month as factories ramped up production to make up for a massive drawdown in inventories, a survey showed Monday. The Institute for Supply Management said its manufacturing index, also known as the purchasing managers index, climbed to 55.9 percent in December from 53.6 percent in November, for a fifth consecutive month of expansion. The figure was stronger than the consensus estimate of a modest rise to 54.3 percent. Any number above 50 percent indicates growth. "The sector may be benefiting from an excessive destocking cycle," said Norbert Ore, chair of the ISM survey committee. "Inventories have been 'too low' for nine consecutive months, and this month's index is the lowest reading since the inception of the index in January 1997. Overall, the recovery in manufacturing is continuing, but there are still some industries mired in the downturn." The ISM report showed nine industry sectors growing, including transportation, computers, apparel and foods. Seven sectors contracted including wood, plastics and chemicals. In the survey's sub-indexes, new orders rose more that five percentage points to 65.5 percent and production increased nearly two points to 61.8 percent. The employment sub-index meanwhile increased to 52 percent from 50.8 percent, suggesting the manufacturing sector is adding workers at a faster pace. "Overall, the December survey points toward sturdy growth in manufacturing industrial production, which is forecast to have increased 1.2 percent at an annual rate in the fourth quarter," said Ryan Sweet at Moody's Economy.com. Ian Shepherdson at High Frequency Economics said the ISM index "was propelled by a rebound in the new orders index, which tends to lead the other components and therefore suggests the January headline index will rise further." He added: "We remain of the view that this survey overstates the pace of broad economic growth because of its large company, manufacturing bias, but overall no doubt this is a robust report." Recommend Send IM Story Print News Search Top Stories NASA's Kepler space telescope finds 5 new planets French rocker Hallyday's daughter hospitalised US manufacturing sector sees acceleration Huge tomb found at Egypt's Saqqara pyramid Novartis bids $40 bln for eye-care giant Alcon More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Beat the blues by going to bed early: study British PM Brown named worst-dressed man Huge tomb found at Egypt's Saqqara pyramid Sweden's cull of wolves nears its quota Rate hikes could help battle bubbles: Fed chief More Most Viewed » Tiger's wife Elin seeking divorce: reports British priest defends urging people to shoplift Beat the blues by going to bed early: study Brazilian confesses to sticking needles into two-year-old More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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